A grand plan to haul in investments and use them to their maximum potential is on the horizon, but it will require the government and Filipinos to work together to achieve it.
The plan involves strengthening the Maharlika Fund by improving confidence in the country mainly through economic Charter change (cha-cha).
The government’s chief task is to inform the people of the urgency of introducing amendments to the Constitution despite the strong resistance to them, mainly from detractors of President Ferdinand “Bongbong” Marcos Jr.
PBBM has clarified that the cha-cha he is pushing will be limited to amending the provisions that stifle the flow of investments, particularly foreign ownership in the public utilities, education, and advertisement industries.
Efforts to inform the public of the benefits of an enhanced economic climate through cha-cha are making a mark, particularly among students and community leaders.
In a recent consultative session in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), the consensus was that an economic cha-cha would benefit Filipinos and the economy primarily through the jobs that would be generated.
One of the Mindanao State University students was convinced that more employment would help end poverty in the country.
Economic managers are confident that the poverty rate will be reduced from 25 percent under the late President Noynoy Aquino to a single digit by the end of PBBM’s term.
Participants in the cha-cha forum dismissed the argument that the country should first look inward. “If we focus on what is in the Philippines, we don’t create employment, we don’t strengthen tourism. We are open to investments (and) to enhance tourism,” the students said.
Malaysia, Singapore, and the United Arab Emirates were cited as examples of economies that opened up to investors with tremendous favorable results.
The BARMM has adopted the open economy model to spur development, particularly by attracting halal industry capitalists.
Most participants supported the proposal to amend the economic provisions of the Constitution but wanted assurances of safety nets to protect national security.
Some were against amending political provisions of the Constitution, particularly on lifting term limits of elected officials.
It was clear to the participants that investors would pour in if the business climate improved, which could be gradually achieved starting with the three industries — public utilities, education and advertisement.
Last March, the House of Representatives approved Resolution of Both Houses (RBH) 7, passing it on second reading without amendments.
It is now with the Senate subcommittee tasked with handling proposed amendments to the economic provisions of the 1987 Constitution, which is still discussing the chamber’s own RBH 6.
Cha-cha’s success will directly affect the promotion of the Maharlika sovereign fund as it will improve the perception of potential investors on the administration’s commitment to bringing foreign capital into the country.
Ambassador to the US Babe Romualdez has estimated that improved relations between the United States and the Philippines will raise $100 billion in new investments.
More investments are forthcoming due to Mr. Marcos’ successful engagements overseas.
A substantial part of the capital infusion is expected to flow to the Maharlika Investment Fund, which will be among PBBM’s legacies.
